Which of the following items is shown in the notes to accounts on finance cost while preparing income statement of a company?
A) Interest paid on bank overdraft
B) Interest paid on borrowings
C) Interest received on term deposits
D) Discount on issue of debentures written off
E) Interest paid on term loan

ABDE

Finance costs are the expenses towards interest charges incurred in the year on the borrowings of the company. Only the interest cost is to be shown under finance cost. Bank charges are shown under Other Expenses because these are incurred for arranging finance. Interest received is not a cost but an income, that's why it is not included in finance cost.